GWANGJU < invest Korea

■ Overview

• Location: within the Daegu Innovation City in Sinseo-dong, Dong-gu, Daegu City
• Area: 1030,000㎡ (innovation city 4216,000㎡)
• Project period: 2009~2038 (Construction: 2009~2013)
• Total budget: KRW 4.6 trillion (national expense KRW 1.1 trillion, municipal expense KRW 0.9 trillion and private investment KRW 2.6 trillion)
• Land for sales :Jun. 29, 2012~
• Facilities
  - Government facilities: New Drug Development Support Center, High-tech Medical Equipment Development Support Center, Lab Animal Center, Clinical Drug Manufacturing Center
  - Regional and private facilities: Communication Center (Daegu City), High-tech Clinical Trial Center, research institutions and laboratory enterprises, venture centers etc.

■ Background

• Dec. 16, 2009: Designation and announcement of the high-tech medical complex
• Jan. 27, 2010: Finalization of the plan to establish the high-tech medical complex
• Oct. 27, 2011: Began construction of government and regional facilities
• Dec. 2013: Completed the construction of the complex

■ Bird’s Eye View

■ Design of High-tech Medical Complex

■ Facilities

■ Land by sectors

(Unit: ㎡, %)

■ Plan for the sales of research facilities

• 289,369㎡(Total area for sale 466,272㎡, sale completed 176,903㎡) ※As of Jun. 30, 2014 Possible to parcel out the land into an optimal size (minimum 1,650㎡)
• Sale price KRW 596,838/㎡ (KRW 1,973,017/3.3㎡) ※Reference price of plant land of industrial zone in Daegu: Seongseo Industrial Complex 3~5 million won/3.3㎡
• Period: Jun. 29, 2012 ~
  ※ Application on a rolling basis
• Land for Sales
  ㆍGeneral sale: Application on a rolling basis from Jun. 29, 2012
  ㆍSpecial supply: Attract excellent research institutions and laboratories
• Tenants: universities, research institutions, laboratory enterprises, local and foreign preclinical trial institutions
  ※ The manufacturing industry cannot move into the complex. However, it is possible to produce medical supplies and equipment for clinical trials.
• Requirements (Human resources and facility standard)
  ㆍHuman resources: three researchers who conduct only medical research and development and no other works including sales and business. (one researcher for a venture company in accordance with Article 2 of the Act on Special Measures for the Promotion of Venture Businesses)
  ㆍFacility standard: The tenant should be equipped with the following facilities to independently carry out medical research and development:
     - one or more laboratories
     - experiment equipment and research tools that researchers can use independently
     - subsidiary facilities including facilities for air purification and air conditioning and heating

■ Sales and move-in procedure

■ Incentives

• Tax Support
  ㆍNational tax: Corporate tax, income tax - 100 percent exemption for the first three years and 50 percent reduction for the next two years.
  ㆍLocal tax: Acquisition tax exemption / property tax - 100 percent exemption for the first ten years and 50 percent reduction for the next 3 years.
  ㆍForeign-invested company: corporate tax, income tax - 100 percent exemption for maximum five years and 50 percent reduction for the next two years, acquisition tax exemption, property tax ? 100 percent exemption for the first 15 years.
• Financial support
  ㆍSubsidies for the regional investment promotion: maximum KRW 6 billion for newly established companies and transferred companies
  ㆍSubsidies for location and investment: maximum KRW 1 billion
  ㆍSpecial subsidies for large-scale domestic and foreign investment companies: support a part of the total investment (partial support of site purchase cost, construction cost, facility and equipment cost)
  ㆍSubsidies for employment and training: no more than KRW 500,000 per person and within 6 months
  ㆍForeign-invested companies: Companies with foreign investment of more than 30 percent (Support site purchase cost, rent cost, construction cost and subsidies for employment and training)
  ※This may differ according to the type of tenant and the scope of investment. (Supported by relevant laws and the Daegu City Ordinance)
• Special support
  ㆍSupport R&D budget for research and development of new drugs and high-tech medical equipment
  ※Support companies through national R&D budget for the high-tech medical complex and the fund for the establishment of Medi-city.
  ㆍCreate Medi-city funds (KRW 50 billion for the promotion of medical industry) and medical industry funds.
  ㆍSupport to foster tailored resources, utilize the excellent domestic and foreign resources and infrastructure and create a work environment.
• Land purchase support
  ㆍPayment in installment for five years free-of-interest or offer discount (12.37 percent) for payment all at once.
  ※Research institutions of SMEs and venture companies support a part of the communication center (4,000㎡) / support sales for private institutions (under progress)
• Special case of regulation
  ㆍMedical Service Act
     - Allow foreign medical personnel to conduct medical services at medical institutions within the complex for medical R&D.
  ㆍNational Health Insurance Act
     - Recognize as medical care when medical supplies, equipment and technology are used to patients for clinical trials. (Substantial reduction of clinical trial cost).
  ㆍPharmaceutical Affairs Act / Medical Appliances Act
     - Item permission is given to medical supplies and equipment that do not meet the standard of production facility.
     - International rules are applied to the permission and notification of importing medical supplies and equipment for research purposes, the manufacturing of medical supplies and equipment and the permission standard for import items.
  ㆍBioethics and Safety Act
     - A sub-committee of the National Bioethics Committee is established in the complex to separately deliberate the items concerning bioethics and safety.
     - The institutions in the complex utilizes the Institutional Bioethics Review Board
  ㆍImmigration Control Act
     - Extend the period of stay for foreign researchers (2→5 years).
  ㆍPatent Act
     - Preference examination for the R&D patent developed in the complex.
• Administrative support
  ㆍProvide one-stop service of approval and permission from sales to move-in.
  ㆍDesignate a public servant who manages from consulting to research and development.